Chairperson, hon members, twice in one month the operation of the Gautrain was disrupted as a result of cable theft. The first cable theft caused a total of 54 trains to be cancelled. It took about seven hours to resolve the problem.
As this train is used largely by business people and airport passengers, it is no exaggeration to say that the loss of time is not only an inconvenience, but it is simply disastrous. At the very moment when everyone was extolling its virtues, the inability of the train to operate on two days in one week has robbed this service of all lustre. Commuter confidence which was building up was severely shaken.
If South Africa is to establish a modernised and viable public transport system, it has to recognise the importance of combating organised crime. This is a challenge greater than the threat of terrorism. Economic sabotage is costing the economy both directly and indirectly.
While the annual direct cost of copper cables is R10 billion, the indirect cost is much higher. With metal prices remaining high or going up, members of organised crime will continue to steal copper while the export market is available to them. Amendments to the International Trade Administration Act will have to be undertaken urgently with all role-players to criminalise trade in stolen copper and other metals. The fact that South Africa exports 350 000 tons of copper scraps per annum must indicate what large quantity of copper, which is stolen each year, gets exported without a problem. It is just too easy. Government has certainly not been on top of the problem. Although the Second-Hand Goods Act was promulgated in April 2009, draft regulations have yet to be formulated. This is indeed an indictment on government.
The announcement by the Minister of Public Enterprises to make cable theft a serious economic offence equivalent to economic sabotage is welcomed, provided that it is followed up with swift action. The Minister of Energy and the Minister of Transport reiterated the same stance. All of us, therefore, would like to know when this classification of cable theft as a serious economic offence will happen as there seems to be consensus within Cabinet regarding this.
For the Gautrain to succeed, it is essential that trains run on schedule. Many commuters have been testing the system during the month of August, and how they will react in future will depend entirely on the level of certainty that the Gautrain can generate.
We should bear in mind that a staggering R30 billion was poured into the Gautrain programme and that this massive expenditure cannot be made futile because government does not have the will to act.
Commentators are noting that the actual cost of lost copper is quite significant. In June this year, the copper theft barometer showed that R14,37 million of copper cable theft had taken place. This year R105,56 million's worth of copper cable was stolen. While this figure is worrying, the knock-on effect of the loss of service to the economy is even more considerable.
What is government doing about this? Apart from policing failures, has the government resorted to any technological solutions such as the use of infrared cameras and alarm systems? Have any arrests been made? Has any of the stolen copper been identified with any of the copper dealers? In the absence of stern government action, copper cables will continue to be stolen and services will continue to be disrupted.
The impact of the Gautrain service disruption due to cable theft has already been negatively felt. Two times in a month is two times too many. On a broader level, the availability of modernised public transport and commuter confidence has been sharply called into question. Everyone knows what the underlying problem is, and everyone in the country is now waiting to see how government is going to act to bring to an end the lucrative trade in stolen copper cables which are effectively sabotaging our stressed and struggling economy. Thank you. [Applause.]
Hon Chairperson, hon Ministers and Deputy Ministers, hon Members of Parliament, comrades and friends, transport is a basic need and a vital tool that enables our communities to access employment and economic opportunities. The ANC government has massively invested in public transport with a transport infrastructure development programme like never seen before in our country. This infrastructure development constitutes part of the ANC's job creation and decent work through an infrastructural development programme.
South Africa, as a regional and continental economic hub, requires a transport system that will enhance rapidly envolving markets for labour, capital, goods and services. Transport infrastructure needs to respond to the demands of these markets within the region.
From 1994, one of the major tasks that the ANC government undertook was to conduct a massive survey of infrastructure needs in the face of the obvious backlogs. The infrastructure backlog of the apartheid legacy totalled some R170 billion.
The centrality of infrastructure development, through well-planned and managed infrastructure programmes, is a catalyst for development and the base upon which economic programmes can flourish. Any development process must entail a commitment to investment in infrastructure.
The budget of the Department of Transport indicates that rail transport expenditure increased from R7,5 billion in 2007-08 to R9,3 billion and is expected to increase from R9,5 billion to R10,8 billion over the medium term. Transfers to the Passenger Rail Agency of South Africa are expected to grow by R2 billion between 2010-11 and 2013-14.
Gauteng, the country's economic hub, which has been experiencing serious traffic congestion for many years on its major routes, has had to respond to what could have resulted in serious impediments to the overall growth of the economic hub.
The N1 freeway carries some of the highest traffic volumes in South Africa, with more than 157 000 vehicles travelling on it per day and a traffic growth rate of 7% per year. There are currently 300 000 cars per week on the N1 between Pretoria and Johannesburg. Traffic congestion on this portion of the N1 freeway is estimated to cost more than R300 million per year, including production time lost during travelling time, higher transport costs and above average accident rates.
The ANC's emphasis on investing in public transport is a conscious decision to provide a service to the majority of our people who do not own private transport and who need efficient and effective public transport. This conscious decision equally seeks to attract commuters away from their private motor vehicles and contributes towards lowering the carbon footprint. This places a greater responsibility on national, provincial and local governments to ensure that public transport systems meet the needs of the communities they serve.
The provision of an affordable and efficient transport system that reduces overall household expenditure on travel cost and decreases actual time spent on travelling is critical. The Gautrain, an 80 kilometre rapid rail network, was conceived and developed to connect Johannesburg, Pretoria and OR Tambo International Airport, easing congestion on the highway between Johannesburg and Pretoria by offering commuters a safe and viable alternative to road travel.
Apart from alleviating the severe traffic congestion, economic development will be stimulated by the rapid rail system and it will have distinct environmental advantages over other forms of transport.
Passenger figures since the operation of the Gautrain service between Johannesburg and Tshwane have been beyond expectations. During the first week of operation, the number of passengers steadily increased from 19 248 on the first day of operation to 41 883 on 9 August 2011.
Phase 1A of the Gautrain has been operational between the airport and Sandton since 8 June 2010 and Phase 1B between Hatfield and Rosebank since 2 August 2011. Phase 1A has experienced very sporadic and isolated cable theft of small lengths that were replaced without any apparent service disruption.
However, Phase 1B was disrupted on 10 and 16 August this year as a result of cable theft. On 10 August, 160 metres of copper core earthing cable was stolen from a substation near Pretoria station and the line between Hatfield and Centurion was closed for over six hours as alternative power was routed to the section of the line. On 16 August, 150 metres of signal cable in the section through Centurion were stolen, resulting in an eight- hour shutdown of the line between Hatfield and Centurion.
To attract and retain commuting passengers, the service must be extremely punctual and reliable. The operator immediately deployed buses to furry passengers between these two stations. It is estimated that between 3000 and 4000 passenger trips were lost on each of those days as result of the theft.
With two cable thefts which brought the Gautrain to a halt, commuters are wondering whether their newest form of transport is reliable. There is not only a direct impact on operations, but also on people's long-term view of the service and the Gautrain commuter link is becoming especially vulnerable to perceptions around certainty, as it is expected that 75% of the customers are loyalty customers. This recent disruption of the Gautrain service, due to copper theft, has drawn renewed attention to the overall economic impact of this crime. The Gautrain is not the only entity affected by cable theft; also hard hit is the Passenger Rail Agency of SA, Prasa, which operates the Metrorail commuter train services, as well as power utility Eskom, phone company Telkom and many other municipalities. In the case of Metrorail, theft of cables makes up to 70% of the incidents of theft and vandalism across the whole rail network, with around 20 km of copper cable currently lost a month to criminal gangs. The intrinsic value of the copper might be relatively low, but the consequences are very dire for the economy.
Both the Minister of Transport, hon Ndebele, and his provincial counterpart, Gauteng MEC for Roads and Transport, hon Ismail Vadi, do not only see these criminal acts as interference with the normal functioning of public transport, but as acts of economic sabotage which has caused a massive inconvenience to thousands of working people using the Gautrain. MEC Vadi condemned these acts in the strongest terms and called on law enforcement agencies not to see this as petty crimes and urged them to leave no stone unturned in apprehending the perpetrators of these criminal acts.
With the Department of Energy estimating that cable theft had cost the country around R100 million last year, and that the indirect costs to the economy is far higher, the Minister of Energy, hon Dipuo Peters, wants copper theft to be classified as economic sabotage. She has already suggested to the Minister of Justice and Constitutional Development, hon Jeff Radebe, that legislation be changed so that cable theft can be classified as a serious offence. The law has to make it harder for thieves to steal copper and sell it for a quick buck. It has to be tougher and the penalties much steeper, because it is now clear that copper theft is a highly organised syndicate and slowly becoming a national epidemic.
Law enforcement agencies have planned by to intensify their battle and be given the required resources for the fight against the epidemic which has become a costly nuisance to public utilities which are forced to spend millions of rands on repairs and security, all at taxpayers' expense.
We need to start calculating the cost to the economy and the cost to the lives of the people of South Africa if anybody steals this particular important resource. There is no technology available that is able to replace copper for the transport network, as well as for electricity and for the provision of telecommunications.
It is, therefore, necessary that our public transport system be developed to a point where commuters of all strata would consider public transport, rather than private transport, as a mode of choice. For that to happen, public transport must prove itself to be reliable and punctual, which in turn can only happen if the scourge of cable theft is contained effectively. Public transport must continue to attract new riders and retain existing ones, as well as ensure support from the communities at large. The provision of effective passenger transport services is vital, not only for the sustainability and growth of business and job creation, but also for discouraging sprawling land use, which is inimical to sustainability. Public transport is the thread that ties together many aspects of modern existence. People depend on it, and they often spend a significant proportion of their income on it.
In conclusion, transport has a huge impact on the lives of our people, as well as on our economic growth and development. Our ability to spearhead growth and development will be partly measured by our success in providing a transport system consistent with the demands of our people and our economy.
It is of utmost importance, therefore, that public confidence in our public transport system be regained and that we continue to ensure that the mobility of our people be enhanced to reach their places of employment, enabling them to access opportunities and thereby contributing to building better and sustainable communities. Thank you. [Applause.]
Chairperson, hon members, today I present a plan for us finally to resolve the copper theft crisis in our country. Copper theft is an alarming and escalating problem. The SA Chamber of Commerce and Industry estimates that it costs our economy direct and indirect losses of R10 billion a year.
It is also clear that this crime is perpetrated by an increasingly sophisticated and highly organised group of syndicates. Their primary goal is to strip our infrastructure of as much copper as they can in order to export it as scrap copper.
It is time that we take a stand. For too long our parastatals and government sat idly by as a small group of thieves enrich themselves at the expense of our country's infrastructure. For too long our parastatals and government departments have refused the support and advice of industry and security experts.
When the DA was elected to office in Cape Town in 2006, we were faced with the same problem. We decided to deal with the issue head-on by instituting a specialised unit to combat copper theft. This unit became famous in Cape Town as the "Copperheads", and was responsible for dramatically reducing the rate of copper theft in the city. I believe that a similar approach in the rest of the country should be followed.
Chairperson, I therefore propose that the following be done immediately to combat copper theft across the country: Put specialised units in place in municipalities and parastatals that are especially hard hit by copper theft, as this approach was successful in Cape Town and can work elsewhere; and implement the Second-Hand Goods Act, Act 6 of 2009, which was signed into law in 2009 and is yet to be implemented. Its provisions will help the police to enforce the law better in this regard.
The police should declare copper theft a priority crime. This will free up more resources to spend on cases relating to copper theft and will oblige the SAPS to spend more time on investigating these cases. Give copper theft its own crime code in the SAPS electronic crime database. At this stage there is no separate database on instances of copper theft and therefore it is difficult to put a sophisticated anticopper-theft strategy in place. By simply giving copper theft its own crime code, we can record the instances of copper theft more thoroughly and wage a more effective campaign against it.
Set copper theft reduction targets and hold leaders accountable for these targets. Work much more closely with industry and security experts. There are numerous organisations and individuals who are capable of providing expert assistance and are willing to do so, but they are all too often ignored by officials from state-owned enterprises or government departments. The SAPS does not carry the responsibility for protecting our infrastructure alone. Every entity that has copper cabling in the ground or in the air must have its own specialised unit to deal with this.
This is the plan I propose to you today. Let us endeavour together to protect our country's infrastructure and make it a reality.
Izinyoka ngabavukeli mbuso. [Copper thieves are saboteurs.]
Thank you. [Applause.]
Chairperson, let me begin first by congratulating South Africa on the milestone achievement with the introduction of the Gautrain. It was an immense project with monetary, labour and logistical intensity as well as tight completion deadlines, as it was required to be in operation before the start of the 2010 World Cup. All deadlines were met, albeit with a few teething problems, but, nonetheless, the project was completed.
Moreover, the Gautrain project aligns itself appropriately with South Africa's stance on the reduction of carbon emissions by effectively reducing the amount of motor vehicles on the roads, as commuters will take the train. This will also alleviate the volume of road traffic congestion by, reportedly, as much as 20% along the Ben Schoeman Highway on the N1.
There have been a couple of setbacks with the project, with water seepage in certain sections and a collapse of a portion of the tunnel. But the major problem, which must be urgently addressed, is that of the copper cable theft. Not only does this disrupt service, but the replacement of this cable is immensely cost prohibitive.
Perpetrators of cable theft must face heavy criminal sanctions and this should be extended to the buyers thereof as well. It is unfortunate that the buyers are not being exposed. In the case of gold, the buyers were known, even though they were part of the Mafia and people were scared to identify them and give their names.
If there is no market demand, there will be no theft. In this regard, we would like to see a special investigative unit of the SAPS created and dedicated to the investigation and arrest of the perpetrators of this crime. As an alternative to copper cabling, we should also be conducting feasibility studies on fibre-optic cabling. This might be more expensive initially, but it carries far less attractiveness to thieves, as its resale through criminal networks will have far less demand. As such, it will not have to be replaced every few months because of copper theft.
Because of the 2010 World Cup, and understandably so, the Gautrain project needed to be completed rather hastily, which led to a few problems, the most notable being a collapse of certain sections of the tunnel. This, we are told, was due to the cement not being allowed time to cure.
Contractors must accept responsibility for inferior workmanship and not be let off the hook. Going forward with further projects of such nature, we need better preparation, less speed or more haste. But all in all, the IFP would like to see this problem being seriously attended to. I thank you. [Applause.]
Chairperson, just last night thousands of commuters travelling out of the Cape Town CBD by rail were stranded for hours, causing panic and frustration for many. This has become a daily norm, largely due to cable theft. At the same time, the introduction of a modernised, high-tech rail system, namely the Gautrain, has been subjected to the same disruptions, also due to cable theft. This is costing the country billions of rand.
All industrial cables have a laser serial number that can be traced back to the original owner. The ID therefore calls upon the South African government to pass stricter rules and regulations governing those in possession of export licences. The police and all ports of entry must strictly enforce these regulations before any cables are exported.
If we are not able to control these illegal exports, then we might even have to consider imposing an outright ban on the export of scrap copper. As a government, we are losing the war on copper theft. This poses a major threat to our economy.
Ek wil beklemtoon dat, as ons nie die geveg of die stryd teen die uitvoer van onwettige koper kan wen nie, ons net sowel die uitvoer van koper in sy totaliteit kan verbied. Ons is besig om die stryd teen koperdiefstal te verloor, en dit kos ons land baie geld. (Translation of Afrikaans paragraph follows.)
[I want to emphasise that, if we cannot win the battle against the export of illegal copper, we may just as well ban the export of copper altogether. We are losing the battle against copper theft, and it is costing our country a lot of money.]
The ID calls for the government's urgent intervention in order to prevent the Gautrain from becoming yet another multibillion rand white elephant.
After all the publicity, it would be a crying shame if our Springbok rugby team were to be stranded tomorrow en route to the O R Tambo International Airport due to disruptions to the Gautrain service. I thank you. [Applause.]
Chairperson, the subject matter about the Gautrain cable thefts seems quite simplistic, but it hides a complexity that deserves proper attention. It is a little loose thread in our society - one of many - that, if pulled, reveals flaws in our society and the lack of policy response thereto by government.
We can start by asking why, in the first place, people steal Gautrain cables or anything else for that matter. This could lead us to the inference that people steal mostly, but not always, because they do not have jobs and find it difficult to make a decent living. We can then ask why they do not have jobs.
It is our view that the current economic system in South Africa contains certain internal inconsistencies that allow the system to work against itself, like affirmative action and black economic empowerment that carve minority expertise, experience and mentorship out of the system. External factors that undermine the economic system, like corruption and flawed procurement based on patronage, have now almost become endogenous to government.
If we can start fixing the economy from a systemic perspective, we will be surprised at the growth in quality jobs and the concomitant reduction in cable theft in general, but also with regard to the Gautrain itself.
Ons kan ook vra waarom daar iets soos die Gautrain in die eerste plek is. Sekerlik nie sodat kabels gesteel kan word nie. Die trein moet tog bydra tot ons vervoeruitdagings, maar indien ons verder kyk, kom die besef dat die projek nooit ingepas het in enige ... [Tussenwerpsels.] (Translation of Afrikaans paragraph follows.)
[We can also ask why there has to be something like the Gautrain in the first place. Surely this is not so that cables can be stolen. This train should be contributing in respect of our transport challenges, but if one looks closely, one realises that the project never did fit into any ... [Interjections.]]
Chairperson, I just wanted to know whether the hon member would be willing to take a question.
Hon member, are you willing to take a question?
Yes, I am.
Chairperson, I would like to know how affirmative action can cause cable theft.
I did not hear the question.
The hon member said that affirmative action is causing cable theft. I want to know how, hon Chairperson. [Laughter.]
It is an indirect factor that plays a role in making our economy less optimal. As a result, people do not have jobs and, at the end of the day, when people do not have jobs, they become hungry and then they have to steal. So there is a logical reaction to that. It is quite logical. [Interjections.] [Laughter.] Chair, has my time expired?
Order, hon members! No, hon member, you still have a few seconds.
In conclusion, the taxpayer thus becomes more pressured by large projects that do not fit optimally into our economic system. For instance, we do not have a proper plan for transport in this country. Our system must come clean from its internal inconsistencies and external contagions, so that we can create real jobs. That, in short, is how we will stop the Gautrain cable theft in future. I thank you.
Chair, the Gautrain is a magnificent service and the cable theft that threatens it must be stopped. A Bombela spokesman says disruptions are already having a massive impact on the economy and are demoralising commuters. One comment on Twitter says, "I'm starting to think that Gautrain is Public Utility Transport Corporation, Putco, in drag."
Somebody reasons that the cable theft problem appears not to be underground, but with the area around substations or inside substations, where cables buried in concrete have to rise. These appear to be the thieves' target areas and, clearly, the points at which greater security is required. Unless cable theft is an inside job, which must be investigated, dogs and CCTV cameras are not doing the job. There must be a vulnerable point in the present system which needs urgent attention.
In the United Kingdom, UK, cameras and motion detectors are camouflaged inside discarded pipes, bits of sleepers, and stones glued together. Disguised in vulnerable places, they send images of thieves to railway police on their cellphones for detection and arrest. Surely, we can do this too.
A South African inventor has, in fact, patented a durable tamperproof shield for underground cables using redundant truck tyres. The tamperproof shield prevents cables from being directly accessed or dragged from the ground. Local firms have systems to take photos over three to five kilometres for alert and detection.
The Gautrain is ours. We should protect it and extend the concept to benefit our economy and the people of South Africa. The ACDP calls on the Minister of State Security to crack down on not only those stealing, but also those dealing and creating a market for cable theft. Thank you.
Hon Chairperson, hon Ministers, hon Deputy Ministers, hon members, the Gautrain rapid rail link is a state-of-the-art rapid rail network in South Africa and the biggest public-private partnership initiative in Africa. It is the largest and costliest transport infrastructure ever undertaken by the Gauteng provincial government.
The initial cost was estimated at R3,5 billion to R4 billion when the project was announced in 2000. This figure was, however, revised upwards to R7 billion for purposes of the environmental impact assessment process in 2003. It was finally revealed as being R20 billion in 2005 after the successful bidder for the project was announced and a contract came into existence. Currently, the Gautrain project is said to cost R25 billion. On 15 February 2006 the then Minister of Finance, Trevor Manuel, indicated in his Budget Speech that R7,1 billion had been taken from the national fiscus and allocated to the Gautrain.
The rail system was built by Bombela Consortium, a partnership between Bombadier Transportation, Bouygues Travaux Publics, Murray and Roberts, Strategic Partners Group, RATP Development, the J & J Group and Absa Bank. It is 50% owned by its international partners and 50% by Murray and Roberts and the Strategic Partners Group, the consortium's black economic empowerment component.
The network is 80 km long and is connected to other forms of public transport like taxis, buses and Metrorail public train system. Commuters can also use Gautrain buses to destinations within a 15 km radius. Travelling at 160 km per hour, the Gautrain takes 42 minutes to travel between Johannesburg and Tshwane. From Sandton to OR Tambo International Airport it takes 15 minutes, and a provision has been made for passengers to remotely check in at Sandton in future.
It was estimated that the Gautrain will create 93 000 direct, indirect and induced jobs during construction. More than 3 000 jobs per year will be created during operation. On 17 March 2009 the Gautrain Project announced that it has created more than 63 000 direct, indirect and induced jobs. In terms of the Gauteng Growth and Development Strategy, the Gautrain is required to contribute towards broad-based black economic empowerment in terms of procurement, broadening the ownership and control, and skills transfer. Emphasis is also placed on the empowerment of women, youth and people living with disabilities.
The Gautrain is expected to reduce traffic congestion on the N1 Ben Schoeman Highway by 20% with 100 000 daily passenger trips. The N1 freeway currently carries some of the highest traffic volumes in South Africa, with more than 157 000 vehicles travelling on it per day and a traffic growth of 7% per year. It is estimated that about one fifth of Tshwane-Johannesburg commuters will switch from travelling by road to travelling by rail. The anticipated shift will, in turn, curb road accidents, deterioration of the road network and attendant road maintenance.
Notwithstanding the noble objective that the Gautrain is expected to achieve, it has been beset by cable theft which, if not urgently attended to, has the potential of further denting the image of public transport and, therefore, counter government's endeavour to promote the use of public transport as the preferred mode of transport. This debate attempts to look at the impact of the Gautrain service disruption on the viability of modernised public transport and commuter confidence.
Launched on 2 August 2011, the Gautrain's Johannesburg-Tshwane link has twice been halted after copper cabling used to electrify the system was ripped out of the ground. Criminals made off with 200 m of cabling. As a result of this illicit act, Gautrain services were disrupted and commuters were left stranded. An emergency bus service was implemented to ferry passengers affected by cable theft incidents to their various destinations.
It is estimated that South Africa loses about R5 billion a year owing to cable theft; and that disrupts rail services, electricity and telecommunications. The estimated direct cost of cable theft in the country is R500 million a year. Business Against Crime South Africa, BACSA, contends, however, that the indirect cost to the economy is conservatively 10 times higher than the expenditure required for replacing stolen cables. The knock-on effects of the cable theft include a reduction in production or service delivery, a drop in productivity and loss of business to competitors. BACSA maintains that there has been a dramatic increase in cable theft since 2006. It is believed that the record commodity price of copper and strong demand for metal are the main reasons for the escalating occurrence of cable theft in South Africa. The cost of copper stolen cannot be compared with the economic cost borne by companies and the general public.
It is, therefore, a truism that cable theft is not just an issue for the Gautrain alone, but for all South Africans. Cable theft represents a direct assault on people and communities who rely on rail travel, electricity and telecommunication to go about their daily activities.
The Bombela Operating Company has committed itself to spending more money with a view to preventing its services from sabotage arising from cable theft. Accordingly, it has undertaken to launch a comprehensive investigation on how to prevent this from happening in future.
According to the Gautrain Management Agency's chief executive, Jack van der Merwe, there will be an installation of CCTV cameras throughout stations, rail reserves, walkways and parking areas. In addition, the control centre will monitor trains, as well as stations at all times. Another proposed measure by Bombela is to have the cabling buried deep underground and secured under several metres of concrete to ensure that the cables remain secure and cannot be stolen.
We therefore propose that those found guilty of cable theft must be given harsh penalties to ensure that the would-be cable thieves learn a lesson from them and realise that it is not easy to benefit from cable theft. Communities should also be made aware of the negative impact that cable theft has on the country's economic wellbeing and the inconvenience caused to commuters who have to bear the brunt as a result of this misdeed. Only a collaborative and holistic strategy will ensure that the fight against cable theft is won.
In conclusion, hon Chairperson, in the ever-evolving customer-focused society, citizens benefit from a growing choice of transport modes and compare transport performance with other services. They expect mobility solutions that are quick, safe, convenient, reliable, clean and affordable. To achieve this, transport operators need to meet two challenges: On the one hand, they must keep pace with their clients' needs in order to deliver innovative quality and make people change their attitudes and behaviour; and on the other hand, they must change their corporate culture of being a fleet manager to a customer-oriented company and boost the sector's potential and attractiveness. If the Gautrain is to achieve its noble objectives, it has to attend to these twin challenges. I thank you.
Chairperson, there is consensus that the more than 150 000 vehicles travelling daily on the N1 highway is untenable, particularly in light of the fact that traffic is growing at 7% per year on that freeway. The Gautrain project was built to alleviate this traffic pressure. Motorists were encouraged to get out of their cars and into the Gautrain. From the inception of this project, when it was first announced back in February 2000, it was billed as a world-class project.
Indeed, it should be considered that it was initially announced at costing R4 billion; and it was revised again in 2003 to R7 billion and again to R20 billion in 2005. It is now hovering around R30 billion. With this kind of money that's gone into this project, how is it that the entire project ground to a halt not once, but twice during this month because of cable theft? Despite the assurances that the cables would be buried under concrete, thieves proved that this was simply not the case. Why were alternatives not considered and used? Before the cables were stolen, extensive remedial work had been required to deal with excessive water seepage into the tunnel between Rosebank and Park station. It is because of this that Park station is still not operational.
How is it that this has come to light only now after so much of taxpayers' money has been spent? How is it that the security service provider for the train service strategic partner's group, which is a shareholder in the Gautrain consortium, was found not to meet the legal requirements of being registered with the Private Security Industry Regulatory Authority? As a result the directors of this company also resigned earlier this month. The reality is that, despite the Gautrain website describing this project as one with "high standards of corporate governance" and that it is completely transparent, nothing could be further from the truth.
The project is the largest and costliest transport infrastructure project ever proposed in Africa and it was never discussed in the Gauteng legislature or submitted to any significant public debate before it was approved and put out to tender. In fact, the transport portfolio chairman of the time, hon Jeremy Cronin, now the Deputy Minister of Transport, in a budget debate told this House that his information was that the project's cost was escalating "quietly and below the radar screen", although Members of Parliament were told hand on heart here in Parliament just a few years ago what the written in stone "absolute upper limit" was. At the time he was talking, the project was billed at R20 billion.
In November 2005 the portfolio committee, still led by Jeremy Cronin, held public meetings and subsequently advised Cabinet to scrap or postpone the project - this is not what I am saying, this is what really happened. However, the national Cabinet decided in December of that year to financially support it.
The lack in transparency and information available not only presents apparent surprises like cable theft, but also makes the public, the DA and myself very suspicious. Why is it that the budget, its costing details and shareholders' details for this project have never been made public, even after my request for these to the Minister? I smell a rat. If there is no reason to smell one, then why am I stonewalled every time I request these details? [Interjections.] The public deserves better treatment than to be left stranded, not only because of cable theft, but also because they are not being provided with the full details for this project.
It is time the Minister provides us with all the information. I will keep fighting to obtain this information that presently appears to be top secret. Thank you. [Applause.]
Chairperson, hon members and comrades, in March 2007 Cabinet approved the Public Transport Strategy and Action Plans 2007 and 2020. The socioeconomic objective of this strategy was to create a lasting legacy of a socially inclusive public transport system in South Africa. It was within this context that the ANC-led government began the process of providing infrastructure that could meet the country's economic demands, whilst also addressing social needs and the legacy of the fragmented apartheid transport system. As part of this strategy, the integrated transport plans and integrated public transport designs were developed. This set in motion significant public transport initiatives. In line with our 52nd National Conference Resolution on Economic Transformation, an important characteristic of the provision of transport infrastructure was to ensure that these projects and programmes translated in both social transformation and communities as partial plans to create employment. The emphasise since 2007 has been on making steady progress towards ensuring that rail is the backbone of South Africa's public transport system. Key elements of this rail investment strategy have been and are being implemented.
The logic behind this decision is a universal one in that you cannot build yourself out of traffic deadlock on the same roads and freeways. Therefore, the built environment must be complemented by effective transport regulation planning and management. The most recent national household travel survey reflects that 38 million citizens live in households with no access to a car; 14 million learners walk to school; 13,7 million citizens use public transport at least once a week; and 7 million workers and learners use public transport every day. Given these figures, which require an updated survey to be undertaken, present a formidable picture to transport planning and regulation. Transport infrastructure, therefore, must be commensurate with the needs of the people and the economy.
It is fully understandable that there might be a conflict between providing higher levels of service and minimising infrastructure cost on both higher levelled infrastructure needed for the efficient functioning of the economy and the infrastructure required for social development. However, given the long-term nature of the investment in the transport system, South Africa is building a strong base for the creation, maintenance and upgrading of its transport infrastructure. Investments are made after thorough analysis of the return on such investments.
In the case of the Gautrain, investment decisions were taken against a set of criteria which include lifetime costs; economic, social and other returns on the investments to the country; returns to the transport system itself; and returns to the commuters. Investment in the Gautrain project is actively meeting the ANC objective in terms of South Africa's public transport strategy which requires the effective promotion of public transport. The Gautrain presents freedom of mobility, builds business confidence and reflects pride in what our nation is capable of doing.
The immediate and continuous objective must be to nurture the public who perceives public transport as a practical, realistic and economic alternative to the use of private cars. Amongst the critical elements in an effort to build an efficient and sustainable transport system, safety in all modes of transport is a key priority of the ANC. Railway operations should embrace safety as part of its operating philosophy and this requires a great sense of responsibility on safety and environmental issues. Compliance to the dictates of safety requirements will not only impact positively on society, but also preserve the railway assets base and enhance and improve the competitiveness of railways.
The Railway Safety Regulator worked closely with the concession company since 2007 to ensure the safe completion and operation of the Gautrain rapid rail project. To this end the Railway Safety Regulator engaged the Gautrain project in the phases of design, construction and testing, and commissioned the conducting of safety reviews, assessments and inspections on all safety aspects.
The transport strategy requires the active promotion of public transport. The Gautrain project illustrates the commitment in this regard and strives to support priorities which are, among others, accelerated economic growth, as well as development and infrastructure delivery with emphasis on broad- based black economic empowerment and job creation.
Up to 8 000 people worked on the Gautrain during the construction phase. In addition, skills transfer took place during this phase on a massive scale. The local recruitment and training of drivers have also taken place. The Gautrain's driver compartments and control systems are more advanced than any other trains presently running in South Africa. The well-tested and tried technology that is applied in the Gautrain constitutes part of the public transport strategy. New rolling stock has been customised for the Gautrain, with 96 new rail cars made from energy-efficient lightweight aluminium. This is a first in South Africa; it is also the first time in many years that new rolling stock has been acquired.
The Gautrain is not only about a train; it is indeed a story of how far we have come and reflects the intention of where rail transport within the transport strategy is heading. It is about a new energy that has come to life that connects and integrates transport, bringing jobs to the people and people to jobs. We are confident, as the ANC, that we will build this transport that connects people to jobs and jobs to people because we as the ANC do not smell a rat. We are in charge of the country and we are doing our job. [Interjections.] I do not know why the DA sees their system functioning when the ID says the system is not functioning because only yesterday people in this province did not go home because there were no trains. I do not know why the DA could not smell a rat when the train was not going to move. We are in charge of the country and every aspect of the railway in this country. We are in charge. Thank you.
Chairperson, I would like to thank all Members of Parliament for their participation in this crucial debate. It is very important that we are afforded an opportunity to engage one another on crucially important issues. I am sure that we have given government some food for thought and that we will be able to tackle this issue with renewed vigour. The Gautrain is emblematic of South Africa's drive for an improved public transport system. Its success is of the utmost importance.
We need to realise that the failure of the Gautrain currently is not because of viability issues, but because of government's inability to tackle copper theft. We call on government to act decisively and with urgency in order to ensure that the Gautrain delivers on the promise it has shown.
Stakeholders and government entities need to put the Gautrain at the top of their priorities in order to ensure that when next we debate this issue, we can congratulate all involved on the success achieved. I therefore thank you, Chair. [Applause.]
Debate concluded.